Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : COM0029

Year : 2004

Industry : Retailing

Region : US

Teaching Note:Available

Structured Assignment :Available

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Introduction:Albertsons was started in the late 1930s as a food retail chain in the US. Although the company pioneered in the dual store concept in 1951 by opening its largest combination store of food and pharmaceuticals (drugs), it started leveraging on this idea only since the late 1990s, when it merged with the 'American Stores Company'. The merger helped Albertsons in adding banners like 'Acme', 'Jewel Osco' and 'Savon' to its product portfolio. Apart from its dual branding strategy, the company has been pursuing neighbourhood marketing, e-commerce and personal shopping and community involvement in order to differentiate itself from its competitors.

To make these ideas effective and to enhance the growth and profit margin of the company, Albertsons' CEO and Pesident, Larry Johnston, introduced five different strategic imperatives in 2001. As a result of these initiatives, the company reported increased net earnings in 2003.

Despite facing a stiff competition fromcompanies like Wal-Mart, Kroger and Walgreen, Albertsons has managed to become the second largest supermarket chain and the fifth largest drug store in the US Johnston said, "In 2001, we announced our vision to transform Albertson's into the world's No.1 food and drug retailer. The journey to this newdestination has become our passion".